A reduction in tax rates may result in a short-term reduction in government revenues, but it will also leave people with more disposable income.

The total amount of spending on nonresidential structures, equipment, software, residential structures, and business inventories in a given period of time is called:

A) net exports. B) government consumption and investment. C) gross private domestic investment. D) personal consumption.

If the AS curve is vertical, then it follows that

A) Real GDP changes will always arise from the supply side of the economy. B) Real GDP changes will always arise from the demand side of the economy. C) Price level changes will always arise from the demand side of the economy. D) Price level changes will always arise from the supply side of the economy. E) a and c